The resource library
Understand the language of the deal
Deep explanations of the terms buyers, sellers, and lenders use in accounting practice transactions.
valuation · 8 min read
Adjusted EBITDA for a CPA firm
Adjusted EBITDA for a CPA firm explained with owner replacement costs, supported add-backs, an earnings bridge, and cash-flow checks for acquisition financing.
valuation · 8 min read
Alternative practice structure (APS)
Alternative practice structure (APS) in accounting acquisitions: map entities, test professional control and independence, and reconcile intercompany economics.
valuation · 8 min read
Attest vs. non-attest services
Attest vs. non-attest services in accounting firm sales: classify engagements, review independence and firm permissions, and budget a successor’s service plan.
valuation · 8 min read
Book of business
Book of business for accounting practices: define clients and fees, verify the sale perimeter, and plan confidential records transfer and service capacity.
valuation · 8 min read
Client accounting services (CAS)
Client accounting services (CAS) in a practice acquisition: define service scope, verify subscriptions, budget staffing and review, and plan systems continuity.
valuation · 8 min read
Client concentration
Client concentration for accounting firms: group related clients, assess revenue and contribution exposure, and test how a lost account affects debt payments.
valuation · 8 min read
Client retention rate
Client retention rate for accounting practices: calculate client and revenue continuity, define cohorts, resolve seasonal cases, and verify transition outcomes.
valuation · 8 min read
Collections-based earnout
Collections-based earnout for an accounting practice: define eligible receipts, model seller payments, review buyer controls, and build an auditable agreement.
valuation · 8 min read
CPA mobility
CPA mobility in accounting acquisitions: map cross-state practice rights, individual licenses, firm authority, remote work, and changing state requirements.
valuation · 8 min read
Engagement letter
Engagement letters in accounting practice acquisitions: reconcile client scope, fees, delivery costs, transfer conditions, record access, and transition roles.
valuation · 8 min read
Fee realization
Fee realization for accounting firms: compare billing and collections, reconcile rates and work cohorts, and test whether fees support profitable service.
valuation · 8 min read
Firm permit / firm license
Firm permit and firm license in accounting acquisitions: verify entity authority, responsible CPAs, required notices, and closing readiness under state rules.
valuation · 8 min read
FTC Safeguards Rule / WISP
FTC Safeguards Rule and WISP in accounting acquisitions: review security evidence, vendor oversight, client-data migration, remediation costs, and access.
valuation · 8 min read
Goodwill allocation (practice sales)
Goodwill allocation in accounting practice sales: reconcile transferred assets, supported values, buyer amortization, seller tax timing, and reporting duties.
valuation · 8 min read
Installment sale
Installment sales of accounting practices: separate principal, interest, basis, tax timing, payment risk, and reporting records before accepting deferred cash.
valuation · 8 min read
IRC §7216 client consent
Section 7216 client consent in accounting practice sales: plan lawful tax-data diligence, evaluate exceptions, document authorizations, and control access.
valuation · 8 min read
Letter of intent (LOI) for a practice purchase
Letter of intent for an accounting practice purchase: define price components, diligence, financing, exclusivity milestones, seller duties, and binding clauses.
valuation · 8 min read
Multiple of gross revenue (accounting practices)
Multiple of gross revenue for accounting practices: define the fee base, reconcile the price, and compare retention terms, profitability, and buyer financing.
valuation · 8 min read
Non-compete and non-solicit
Noncompete and nonsolicitation terms in accounting sales: distinguish seller and employee restrictions, current legal status, client choice, and transition.
valuation · 8 min read
Non-CPA ownership rules
Non-CPA ownership rules for accounting acquisitions: evaluate economic rights, voting control, qualified owners, dilution, and lawful transaction structures.
valuation · 8 min read
Peer review
Peer review for accounting firm buyers and sellers: inspect reports and follow-up, confirm transaction treatment, and budget ongoing professional review costs.
valuation · 8 min read
PTIN and EFIN transfer
PTIN and EFIN transfer in accounting practice acquisitions: understand nontransferable EFINs, preparer roles, application timing, and filing-season readiness.
valuation · 8 min read
Quality of earnings (QoE) for an accounting firm
Quality of earnings for accounting firms: reconcile fee timing, owner costs, adjustments, cash conversion, lender requirements, and confidential review records.
valuation · 8 min read
Recurring vs. one-time revenue
Recurring vs. one-time revenue for accounting practices: classify tax and CAS fees, verify renewals and scope, and reconcile an acquisition revenue forecast.
valuation · 8 min read
Retention clawback
Retention clawback explained for accounting practice sales: define the baseline, calculate price reductions, allocate transition risk, and verify buyer reports.
valuation · 8 min read
Rollover equity
Rollover equity in accounting practice sales: assess issuer rights, dilution, debt, exit waterfalls, transfer limits, and transaction-specific tax treatment.
valuation · 8 min read
Seller financing
Seller financing for accounting practice acquisitions: evaluate note payments, credit risk, priority, SBA standby treatment, and installment tax assumptions.
valuation · 8 min read
Seller's discretionary earnings (SDE) for an accounting practice
Seller's discretionary earnings (SDE) for an accounting practice: calculate owner earnings, verify add-backs, and separate labor pay from acquisition returns.
valuation · 8 min read
Transition agreement
Transition agreements for accounting practice sales: define seller duties, buyer accountability, consulting costs, client introductions, records, and handoff.
valuation · 8 min read
Write-ups / write-downs (WIP)
Write-ups and write-downs (WIP) in accounting practice sales: reconcile unbilled work, assess fee recovery, define cutoff duties, and avoid double counting.
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Talk through the deal.
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Bring your questions about value, timing, buyers, or what comes next. Start with a confidential intro call with Jason Taken.